Group Managing Director’s Review
Read moreUS$37bn
Combined gross revenue*
US$18bn
Revenue
US$786m
Underlying profit attributable
to shareholders
US¢80
Dividend per share
Overview
The performance of Jardine Cycle & Carriage (“JC&C” or “the Group”) in 2021 recovered substantially compared to 2020, reflecting improvements across all parts of the portfolio. The Group’s results were, however, 9% lower than in 2019, prior to the start of the pandemic.
Astra contributed US$655 million to the Group’s underlying profit, compared to US$309 million in the previous year, reflecting improved performances particularly from its automotive, financial services, heavy equipment and mining, and agribusiness operations.
Direct Motor Interests contributed an underlying profit of US$39 million, compared to US$14 million in the previous year, mainly due to improved contributions from Cycle & Carriage Singapore and Tunas Ridean.
Other Strategic Interests contributed an underlying profit of US$151 million, 26% up from the previous year, mainly due to improved contributions from THACO’s automotive operations.
Corporate costs increased from US$14 million in 2020 to US$59 million, primarily due to the impact on costs of the translation of foreign currency loans, which led to a foreign exchange loss of US$28 million in 2021, compared to a gain of US$24 million in the previous year.
The Group’s underlying profit attributable to shareholders was 83% higher than the previous year at US$786 million. After accounting for non-trading items, profit attributable to shareholders was US$661 million, 22% higher than the previous year. The non-trading items recorded in the year mainly comprised unrealised fair value losses related to non-current investments.
The Group’s financial position remains strong, with net asset value per share of US$18.64 at the year-end, 6% higher than at the end of 2020. Consolidated net cash, excluding Astra’s financial services subsidiaries, was US$0.8 billion at the end of December 2021, compared to consolidated net debt of US$0.9 billion at the end of 2020, mainly due to improved operating cash flows. Net debt within Astra’s financial services subsidiaries decreased from US$2.8 billion to US$2.7 billion.
JC&C corporate net debt was US$1.5 billion, similar to the previous year-end.
Strategic Developments
Astra
Over the past year, Astra has made several strategic investments in new businesses, including US$35 million in Halodoc, a healthcare-based technology platform, as part of its strategic focus on building expertise in the healthcare sector.
Astra also entered into several transactions involving its existing businesses. In its infrastructure business, Astra acquired a 49% stake in Jasamarga Pandaan Malang, the operator of the 38.5km Pandaan-Malang toll road, one of the most important toll roads in East Java, for US$95 million. It also acquired an additional 14% stake in Marga Lingkar Jakarta, the operator of the 7.7km Kebon Jeruk-Ulujami toll road as part of the Jakarta Outer Ring Road, for US$19 million, taking its ownership to 49%. These acquisitions bring Astra’s total interests in toll roads to 396km.
In Astra’s property business, Astra Land Indonesia (“ALI”), Astra’s 50:50 joint venture with Hongkong Land, acquired the remaining 33% stake in Astra Modern Land, the developer of the Asya residential township in East Jakarta, which it did not already own for US$70 million in December 2021.
In February 2022, ALI established a joint venture with LOGOS to develop and manage modern logistics warehouses in Indonesia.
Direct Motor Interests
During the year, JC&C increased its interest in Cycle & Carriage Bintang from 59.1% to 89.0% for around US$18 million, through a series of on-market purchases and acceptances under its Voluntary General Offer. In June 2021, JC&C also entered into an agreement to acquire the remaining 30% stake that it did not own in Republic Auto, a used car business in Singapore, for approximately US$22 million.
Other Strategic Interests
During the year, JC&C increased its interest in REE from 29.8% to 31.0% through a series of on-market purchases, for around US$10 million.
Dividends
The Board is recommending a final one-tier tax-exempt dividend of US¢62 per share (2020: US¢34 per share) which, together with the interim dividend of US¢18 per share (2020: US¢9 per share), will produce a total dividend for the year of US¢80 per share (2020: US¢43 per share), 86% higher than 2020.
People
On behalf of the Board, I would like to recognise our 240,000 employees across the region for their continuing hard work and efforts, which have enabled the Group to continue to operate despite the challenging environment created by the COVID-19 pandemic.
Ms Vimala Menon, the Lead Independent Director and Chairperson of the Audit Committee, retired from the Board in December 2021. Mr Michael Kok, Chairman of the Remuneration Committee, will be retiring from the Board at the end of March 2022. On behalf of the Board, I would like to record our appreciation and thank Vimala and Michael for their valuable contributions to the Group.
I am delighted to welcome Mr Samuel Tsien, who joined the Board in October 2021 as an independent director. Samuel has many years of experience in the banking and finance sectors, and we look forward to the contribution he will bring to the Group.
Outlook
The pandemic is expected to remain a significant risk to performance in 2022, but the Group is optimistic about the long-term economic prospects of Southeast Asia, and is well placed to benefit from its growth opportunities.
Ben Keswick
Chairman
